KARACHI: The stock market continued to enjoy the bull-run for the third successive day as the KSE-100 index rose and closed just a few points shy of 42,000.
After a brief dip in the initial hours of trading, the KSE-100 rose steadily and managed to power past 42,000 points. Investors kept buying stocks at attractive valuations, anticipating inflows under the tax amnesty scheme. Though some profit-taking was noted in certain stocks, the overall mood remained positive.
At close, the benchmark KSE 100-share Index recorded an increase of 279.86 points or 0.67% to settle at 41,997.85.
“The index traded in a narrow range in early hours as investors likely took cue from lower regional markets on global trade worries. However, a midday rally in cement stocks including Lucky Cement (+4.59%), DG Khan Cement (+1.67%) and Maple Leaf Cement (+4.92%) pushed the index higher,” he said.
Pakistan Oilfields (+1.62%) moved up on international oil price recovery while Hascol (+3.81%) drew investors’ interest following an upward revision in margins of oil marketing companies.
According to the analyst, Pakistan’s official inclusion in the Financial Action Task Force’s (FATF) grey list will likely remain a non-event while news about the ongoing tax amnesty scheme continued to hint at its success.
“We expect the momentum in equities to continue as investors eye increased domestic liquidity. With just one trading day left in the ongoing fiscal year, some window-dressing by institutional investors in illiquid stocks can be witnessed on Friday,” he added.
Overall, trading volumes decreased to 159.8 million shares compared with Wednesday’s tally of 235.5 million. The value of shares traded during the day was Rs7.2 billion.
Shares of 355 companies were traded. At the end of the day, 241 stocks closed higher, 100 declined while 14 remained unchanged.
Siddiqsons (R) was the volume leader with 14.8 million shares, gaining Rs0.52 to close at Rs1.82. It was followed by K-Electric Limited with 13.6 million shares, gaining Rs0.26 to close at Rs5.45 and Pak Elektron with 9.7 million shares, gaining Rs0.56 to close at Rs35.09.
Foreign institutional investors were net sellers of Rs680.3 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.